Federal Register / Vol. 63, No. 130 /Wednesday, July 8, 1998 / Notices 36985

13 15 U.S.C. 78f(b)(5).

14See Securities Exchange Act Release No. 38119

(January 3, 1997), 62 FR 1788 (January 13, 1997).

15 15 U.S.C. 78s(b)(2).

16 17 CFR 200.30–3(a)(12).

1 15 U.S.C. 78s(b)(1).

2 17 CFR 240.19b–4.

3See Letter from Agnes M. Gautier, Vice

President, Market Surveillance, NYSE, to Richard

Strasser, Assistant Director, Division of Market

Regulation, Commission, dated June 17, 1998

(‘‘Amendment No. 1’’). In Amendment No. 1, the

NYSE clarifies that percentage orders, under the

proposed rule change, will be treated the same as

other orders other than stop orders. The NYSE also

notes that the proposed amendment to NYSE Rule

115, permitting a specialist to respond to an issuer’s

inquiry regarding buying and selling interest in its

stock, is consistent with NYSE Rule 106, recent

changes to the Exchange’s Allocation Policy, and

the duties of a specialist in that the proposal should

promote a positive professional relationship

between the specialist and the exchange-listed

company. Furthermore, the Exchange notes it

believes that non-member, non-issuer market

participants are not disadvantaged by

communications between the issuer and the

specialist because the same information is available

through a member’s market probe of the specialist.

The Exchange represents that under the proposed

rule change issuers will not have direct access to

the floor of the Exchange.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

No comments were solicited or

received.

III. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule

change is consistent with the Act.

Persons making written submission

should file six copies thereof with the

Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549. Copies of the

submission, all subsequent

amendments, all written statements

with respect to the proposed rule

change that are filed with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room. Copies of such filing also will be

available for inspection and copying at

the Exchange. All submissions should

refer to file number SR–CHX–98–16 and

should be submitted by July 29, 1998.

IV. Commission’s Findings and Order

Granting Accelerated Approval of

Proposed Rule Change

The Commission finds that the

Exchange’s proposal is consistent with

the requirements of the Act and the

rules and regulations thereunder

applicable to a national securities

exchange. Specifically, the Commission

finds that the proposed rule change is

consistent with Section 6(b)(5) of the

Act,13 which requires that an exchange

have rules designed to prevent

fraudulent and manipulative acts and

practices, to promote just and equitable

principles of trade, to remove

impediments to and perfect the

mechanism of a free and open market

and a national market system, and, in

general, to protect investors and the

public interest. The Commission also

believes that the proposal is consistent

with Section 11A(a)(1)(C) and

11A(a)(1)(D) of the Act because the

Exchange’s proposal conforms CHX

specialist obligations to those applicable

to OTC market makers in Nasdaq/NM

securities, while CHX provides a

separate, competitive market for

Nasdaq/NM securities.

The Commission notes however that,

while the Exchange has been working

towards establishing a linkage,

specialists and OTC market makers do

not yet have an effective method of

routing orders to each other. The

Commission expects the Exchange to

continue to work towards establishing a

linkage with the Nasdaq systems as

requested in the January 3, 1997 order.14

The Commission is approving the

extension of the pilot so that the rules

of the exchange will operate without

interruption.

The Commission therefore finds good

cause for approving the proposed rule

change prior to the thirtieth day after

the date of publication of notice of filing

thereof in the Federal Register.

It is Therefore Ordered, pursuant to

Section 19(b)(2),15 that the proposed

rule change (SR–CHX–98–16) be, and

hereby is, approved through December

31, 1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.16

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–18052 Filed 7–7–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–40146; File No. SR–NYSE–

98–10]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

the New York Stock Exchange, Inc.,

and Amendment No. 1 Thereto, To

Amend Exchange Rule 115 Regarding

Disclosure of Specialists’ Orders

June 30, 1998.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on March 17,

1998, the New York Stock Exchange,

Inc. (the ‘‘NYSE’’ or ‘‘Exchange’’) filed

with the Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

the proposed rule change as described

in Items I, II and III below, which Items

have been prepared by the Exchange.

On June 23, 1998, the NYSE filed an

amendment to the proposal.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change, as amended, from interested

persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change consists of

amendments to Exchange Rule 115,

Disclosure of Specialists’ Orders

Prohibited. The text of the proposed

rule change is available at the Office of

the Secretary, the NYSE, and at the

Commission.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

NYSE included statements concerning

the purpose of, and basis for, the

proposed rule change and discussed any

comments it received on the proposed

rule change. The text of these statements

may be examined at the places specified

in Item IV below. The NYSE has

prepared summaries, set forth in

Sections A, B, and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

Exchange Rule 115 prohibits

disclosure of information in regard to

orders on a specialist’s book except in

certain limited circumstances. This

policy was first adopted as a rule in

February 1934. Limited exceptions were

adopted for disclosure when

demonstrating methods of trading to

visitors in 1938 and to implement the

Intermarket Trading System in 1978. A

third exception, approved in 1991,

allows a specialist to provide
36986 Federal Register / Vol. 63, No. 130 /Wednesday, July 8, 1998 / Notices

4Securities Exchange Act Release No. 29318

(June 17, 1991) 56 FR 28937 (June 25, 1991).

5The proposal includes not only orders on the

specialist’s book, but also any percentage orders

held by the specialist. See Amendment No. 1, supra

note 3.

6A stop order is an order to buy or sell at the

market when a definite price is reached either

above (on a buy) or below (on a sell) the price that

prevailed when the order was given. A stop order

becomes a market order after a transaction at the

stop price occurs. A stop-limit order is a stop order

that designates a price limit. A stop-limited order

becomes a limit order when a transaction takes

place at the stop price. See NYSE Rule 13.

7 15 U.S.C. 78k(b).

8 Id.

9 15 U.S.C. 78f(b)(5).

10 Id. 11 Id.

information about buying or selling

interest in the market at or near the

prevailing quote in response to a market

probe of a member.4 The specialist must

make this same information available, in

a fair and impartial manner, to all

members making a similar inquiry. The

specialist must also be expressly

authorized to release the names of

buyers and sellers by the member who

entered the order. The names of buyers

and sellers refers to the names of

members or member organizations

entering orders or expressing interest

with the specialist, and not the names

of their customers.

The Exchange is proposing to amend

Rule 115 to permit a specialist, acting

solely in his or her capacity as a market

maker (i.e., while on the Floor), and

responding to a market probe by a

member, to give any information

concerning buying and selling interest

or orders he or she holds on the book

in a stock.5 This proposal deletes the

limitation that such disclosed interest

be ‘‘at or near the prevailing quote.’’

However, with respect to stop orders on

the book for a stock,6 a specialist may

disclose this information when the

specialist judges that the member

conducting the market probe has the

intention to trade in the stock at a price

at which such stop orders would be

relevant. The additional restriction on

the disclosure of stop orders will permit

disclosure in legitimate circumstances,

e.g., when a proposed trade would be

effected at a price which would trigger

stop orders.

The proposal would also permit the

specialist to disclose the identity of any

buyer or seller represented on his book

without being required to have express

authorization from the member who

entered the order to disclose the names

of buyers and sellers, i.e., the members

or member organizations who are

representing the buying and selling

interest. Nevertheless, a member may

request that the identity of a buyer or

seller not be disclosed at any time, or in

respect to a particular order left with a

specialist.

The rule will continue to require a

specialist to make any information

available in a fair and impartial manner.

The Exchange believes that enabling

specialists to provide information under

amended Rule 115 will facilitate the

bringing together of buyers and sellers

in a more efficient manner. For

example, information will be given to

members acting in the capacity of agents

for their customers, and thus, the

benefits of having this information will

inure to these customers by giving them

a more complete picture of trading

interest.

An added exception to Rule 115 is

proposed to permit specialists to

disclose information about orders on the

book in their stock to listed companies,

except for information pertaining to stop

orders in the stock. The Exchange

believes this will provide the

opportunity for specialists to respond to

listed companies’ requests to be kept

apprised concerning the market for their

stocks.

2. Statutory Basis

The basis under the Act for this

proposed rule change is section 11(b),7

which prohibits a specialist from

disclosing information on orders he or

she holds ‘‘which is not available to all

members. * * *’’ The Exchange

believes that the change to NYSE Rule

115 is consistent with Section 11(b) 8

because it provides a mechanism for the

fair and impartial disclosure of

information by the specialist in a

manner that is neither anti-competitive

nor discriminatory. The specialist must

respond to market probes by members

with the same information being

disclosed to each such member. With

respect to the disclosure of stop orders,

the rule’s requirement that the specialist

have a reasonable belief that the inquiry

is fostered by an intent to trade at a

relevant price supports the aims of

Section 6(b)(5) of the Act 9 concerning

the prevention of fraudulent or

manipulative acts. Disclosure of certain

information to issuers also supports the

provisions of Section 6(b)(5) 10 with

respect to creating a free and open

market.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

The Exchange does not believe that

the proposed rule change will impose

any burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants or Others

The Exchange has neither solicited

nor received written comments on the

proposed rule change.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Within 35 days of the date of

publication of this notice in the Federal

Register or within such longer period (i)

as the Commission may designate up to

90 days of such date if its finds such

longer period to be appropriate and

publishes its reasons for so finding or

(ii) as to which the self-regulatory

organization consents, the Commission

will:

(A) By order approve the proposed

rule change, or

(B) Institute proceedings to determine

whether the proposed rule change

should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to

submit written data, views and

arguments concerning the foregoing,

including whether the proposed rule

change, as amended, is consistent with

the Act. Specifically, the Commission

requests comments on whether the

proposed provisions regarding issuer

access to the specialist’s book is

consistent with the Act, including

Section 6(b)(5) of the Act.11 Persons

making written submissions should file

six copies therof with the Secretary,

Securities and Exchange Commission,

450 Fifth Street, N.W., Washington, D.C.

20549. Copies of the submissions, all

subsequent amendments, all written

statements with respect to the proposed

rule change that are filled with the

Commission, and all written

communications relating to the

proposed rule change between the

Commission and any person, other than

those that may be withheld from the

public in accordance with the

provisions of 5 U.S.C. 552, will be

available for inspection and copying in

the Commission’s Public Reference

Room, 450 Fifth Street, N.W.,

Washington, D.C. 20549.

Copies of such filing will also be

available for inspection and copying at

the principal office of the NYSE. All

submissions should refer to File No.

SR–NYSE–98–10 and should be

submitted by July 29, 1998.
Federal Register / Vol. 63, No. 130 /Wednesday, July 8, 1998 / Notices 36987

12 17 CFR 200.30–3(a)(12).

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–18002 Filed 7–7–98; 8:45 am]

BILLING CODE 8010–01–M

SMALL BUSINESS ADMINISTRATION

Data Collection Available for Public

Comments and Recommendations

ACTION: Notice and request for

comments.

SUMMARY: In accordance with the

Paperwork Reduction Act of 1995, this

notice announces the Small Business

Administration’s intentions to request

approval on a new, and/or currently

approved information collection.

DATES: Comments should be submitted

on or before September 8, 1998.

FOR FURTHER INFORMATION CONTACT:

Curtis B. Rich, Management Analyst,

Small Business Administration, 409 3rd

Street, S.W., Suite 5000, Washington,

D.C. 20416. Phone Number: 202–205–

6629.

SUPPLEMENTARY INFORMATION:

Title: ‘‘Executive Education Program

Participant Profile’’.

Type of Request: New Collection.

Form No: N/A.

Description of Respondents: 8(a)

Participants.

Annual Response: 300.

Annual Burden: 225.

Comments: Send all comments

regarding this information collection to

Cherina Hunter, General Business &

Industry Specialist, Office of Minority

Enterprise Development, Small Business

Administration, 409 3rd Street S.W.,

Suite 8000, Washington, D.C. 20416.

Phone No: 202–205–6412.

Send comments regarding whether

this information collection is necessary

for the proper performance of the

function of the agency, accuracy of

burden estimate, in addition to ways to

minimize this estimate, and ways to

enhance the quality.

Dated: July 2, 1998.

Vanessa Smith,

Acting Chief, Administrative Information

Branch.

[FR Doc. 98–18137 Filed 7–7–98; 8:45 am]

BILLING CODE 8025–01–M

SMALL BUSINESS ADMINISTRATION

[License No.: 01/71–0369]

RFE VI SBIC, L.P.; Notice of Issuance

of a Small Business Investment

Company License

On March 9, 1998, an application was

filed by RFE VI SBIC, L.P., at 36 Grove

Street, New Canaan, Connecticut 06840,

with the Small Business Administration

(SBA) pursuant to Section 107.300 of

the Regulations governing small

business investment companies (13 CFR

107.300 (1997)) for a license to operate

as a small business investment

company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 01/71–0369 on June

17, 1998, to RFE VI SBIC, L.P., to

operate as a small business investment

company.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)

Dated: June 19, 1998.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 98–18139 Filed 7–7–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

[License No.: 06/76–0316]

SBIC Partners II, L.P.; Notice of

Issuance of a Small Business

Investment Company License

On December 22, 1997, an application

was filed by SBIC Partners II, L.P., at

201 Main Street, Suite 2302, Fort Worth,

TX 76102, with the Small Business

Administration (SBA) pursuant to

Section 107.300 of the Regulations

governing small business investment

companies (13 CFR 107.300 (1997)) for

a license to operate as a small business

investment company.

Notice is hereby given that, pursuant

to Section 301(c) of the Small Business

Investment Act of 1958, as amended,

after having considered the application

and all other pertinent information, SBA

issued License No. 06/76–0316 on June

16, 1998, to SBIC Partners II, L.P. to

operate as a small business investment

company.

(Catalog of Federal Domestic Assistance

Program No. 59.011, Small Business

Investment Companies)

Dated: June 19, 1998.

Don A. Christensen,

Associate Administrator for Investment.

[FR Doc. 98–18138 Filed 7–7–98; 8:45 am]

BILLING CODE 8025–01–P

SMALL BUSINESS ADMINISTRATION

Interest rates

The Small Business Administration

publishes an interest rate called the

optional ‘‘peg’’ rate (13 CFR 120.214) on

a quarterly basis. This rate is a weighted

average cost of money to the

government for maturities similar to the

average SBA direct loan. This rate may

be used as a base rate for guaranteed

fluctuating interest rate SBA loans. This

rate will be 57⁄8 percent for the July—

September quarter of FY 98.

Pursuant to 13 CFR 120.921(b), the

maximum legal interest rate for a

commercial loan which funds any

portion of the cost of a project (see 13

CFR 120.801) shall be the greater of 6%

over the New York prime rate or the

limitation established by the

constitution or laws of a given State.

The initial rate for a fixed rate loan shall

be the legal rate for the term of the loan.

Jane Palsgrove Butler,

Acting Associate Administrator for Financial

Assistance.

[FR Doc. 98–17979 Filed 7–7–98; 8:45 am]

BILLING CODE 8025–01–M

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Reports, Forms and Recordkeeping

Requirements

AGENCY: Office of the Secretary, DOT

ACTION: Notice.

SUMMARY: This notice lists those forms,

reports, and recordkeeping requirements

imposed upon the public which were

transmitted by the Department of

Transportation to the Office of

Management and Budget (OMB) for its

approval in accordance with the

requirements of the Paperwork

Reduction Act of 1995 (44 USC Chapter

35). Section 3507 of Title 44 of the

United States Code, requires that

agencies prepare a notice for publication

in the Federal Register, listing

information collection request

submitted to OMB for approval or

renewal under that Act. OMB reviews

and approves agency submissions in

accordance with criteria set forth in that

Act. In carrying out its responsibilities,

OMB also considers public comments